Walking Away In The Bay Area
The numbers say it all- $2600/mo for interest only, or rent the same for $1200?
http://www.nytimes.com/2008/02/29/us/29 ... ref=slogin
"The value of homeownership, then, has increasingly shifted to the home's likelihood to rise in value, like any other investment. And when investments go bad, people tend to walk away".
http://www.nytimes.com/2008/02/29/us/29 ... ref=slogin
"The value of homeownership, then, has increasingly shifted to the home's likelihood to rise in value, like any other investment. And when investments go bad, people tend to walk away".
Comments
Sometimes. Some people however, hold onto their investment hoping it will recover. I know people who still hold essentially worthless stocks from 8 years ago (dotcom bust). The difference is that holding a near worthless stock is free. Holding a house is not.